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IRS Problems

Do you need tax help? Do you owe the IRS or State? We specialize in tax help for individuals and businesses needing assistance with the IRS or face State tax problems.

Our staff consists of tax accountants and attorneys who can assist you in:

How and when to complete IRS Form 433 (Collection Information Statement)

When to apply for an IRS Streamline Installment Agreement

Statute of limitations for claiming a refund

IRS Audits

Notice of Deficiency

IRS Appeals

Revenue Rulings

Collections

Tax penalties

Internal Revenue Code

Amended returns

Final Notice of Intent to Levy

What is a Tax Lien?

In most jurisdictions, when a property owner is late on paying real property taxes, the county or municipality will issue a a tax lien on that person's property. Certain states allow the tax lien to become a first lien on the property, which is then turned around and sold at auction as a tax lien certificate.

After placing a successful bid, buyers of a government-issued tax lien certificate will then get one of two things:

A state-mandated yield from the lien, which the delinquent taxpayer must pay in order to release the lien, OR

Title to the property (after a certain amount of time, set by the jurisdiction) if the delinquent taxpayer fails to pay up.

Individuals have been snapping up tax liens more and more because of these two benefits. A fixed percentage rate, mandated by a government agency, or the title to property at a substantial discount are incredible benefits rarely seen with other real estate transactions.

Risks In Going It Alone

The rewards of tax liens seem promising. Who would balk at the chance to pay a fraction of the cost for a new home, either to collect a fixed penalty from the homeowner or (in case of default) the property itself?

However, what many tax lien buyers find out is that, if they did not do proper title and bankruptcy research, their tax liens can become worthless. For instance, creditors and the IRS can take priority over tax lien holders in cases where the original owner of the property declares bankruptcy. In addition, many people purchase properties sight unseen, going just on the description posted prior to auction. Without actual inspections and geographical surveys, sometimes these deeds are worth little more than the paper they're printed on.

Why was my return selected for audit?

When returns are filed, they are compared against “norms” for similar returns. The “norms” are developed from audits of a statistically valid random sample of returns. These returns are selected as part of the National Research Program which the IRS conducts to update return selection information.

The return is next reviewed by an experienced auditor. At this point, the return may be accepted as filed, or if based on the auditor’s experience questionable items are noted, the agent will identify the items noted and the return is forwarded for assignment to an examining group.

Where will the audit be held?

It depends on the type of audit being conducted. Audits by Mail/Correspondence Audit: Some audits are conducted entirely by mail. If the audit is conducted by mail, you will receive a letter from the IRS asking for additional information about certain items shown on the tax return such as income, expenses, and itemized deductions. In-Person Audits are audits conducted either at a local IRS office or at your business location.

IRS Audit Penalties: Will You Receive a Tax Penalty With An Audit?

An IRS tax audit can be defined as a process by which the IRS examines your tax return carefully for accuracy with the intention of verifying the correctness of it. Just because your tax return has been selected for review, does not necessarily mean that you have done anything wrong or that you will incur additional tax liabilities and penalties. However, the statistics show that around 75% or more of individuals who are audited, end up owing more taxes. If the IRS does find something wrong, the burden of proof will fall on your shoulders with almost all penalty provisions (fraud is one exception).

There is a wide range of penalties you could incur from an adverse IRS audit decision. Additional taxes could be due after an Examination Report shows that understated your taxes.

Nothing strikes fear in the hearts of people more than receiving an IRS Audit letter in the mail. Audits take significant time away from your business and family, requiring you to gather mounds of records substantiating each and every item reported on your tax return and develop a comprehensive understanding of tax law.

The IRS leaves no stone unturned in its mission to determine the accuracy of your tax return. If you don't comply with the Auditors' wishes, the IRS will recalculate your tax and send you home with a hefty tax bill as your parting gift.

You see, IRS Auditors are trained to extract more information from you than you have a legal obligation to provide. IRS Auditors know that most people fear them and are ignorant of their rights. As a result, they know they can use that fear and ignorance to their advantage.

Rarely do our clients even have to talk with the IRS. We handle it all for you so that you need not take time off of your business or job to handle the bureaucracy and paperwork of the IRS. No lost wages or business. You simply forward notification of an audit to us and we handle it from A to Z.

If you've received an audit notice from the IRS, please do not hesitate to call, or fill out the form on the "Contat" tab for a Free Consultation with our tax specialist.